All three major Wall Street indices retreated more than 1% on Tuesday (05/03/24), triggered by weakness in mega-cap Technology stocks such as Apple plus the semiconductor chip sector that dragged down the NASDAQ 1.65%, ahead of the release of economic employment data and comments from Federal Reserve Chairman Jerome Powell.
Investors nervously awaited the release of a number of economic data and Federal Reserve Chairman Jerome Powell’s testimony. Market participants await a series of indicators that will shed light on the health of the US economy in terms of Services sector PMI and Factory Orders (Jan) on Tuesday, as well as Non-farm Payrolls on Friday. Also this week, investors await key comments from Fed Chairman Jerome Powell who is scheduled to speak on Wednesday and Thursday.
The S&P500 closed slightly lower on Monday (04/03/24), down 0.12% to 5130.95 after an up-and-down trading session as investors nervously awaited the release of a number of economic data and Federal Reserve Chairman Jerome Powell’s testimony.
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ersonal Consumption Expenditures (PCE) price index and US GDP 4Q23 data were the duo of economic data closely monitored by market participants last week. The PCE price index came in as expected, firming 0.3% yoy and 2.4% yoy for January, the lowest annual gain since Feb 2021 following a 2.6% gain in December.
Fed governor Christopher Waller said Friday he would like to see the U.S. central bank shift its holdings more toward short-term Treasuries, sending the yield on the 2-year Treasury 11 basis points lower to 4.54%.
he S&P 500 and Nasdaq wrapped up a strong week with record closes on Friday (the first day of March), underpinned by slump in Treasury yields and an Nvidia-led surge in chip stocks as the latest quarterly results from tech continue to point to accelerating artificial intelligence demand.
PCE price index was released as expected, where it rose 0.3% mom and 2.4% yoy for January, which is the lowest annual increase since Feb 2021 following a 2.6% increase in December, thus easing investors’ concerns that the level of inflation that is difficult to fall will make the Fed keep interest rates high for a longer time.
BYE FEBRUARY, WELCOME MARCH! The NASDAQ led the US stock market gains for the umpteenth time, even closing at a record high since 2021, on the back of a rally in AI-related companies, following an in-line with expectations US Inflation report and comments from several Federal Reserve officials supporting hopes of a rate cut materializing this summer.
